Deutsche Bank fired back with a counterclaim worth roughly $636 million against four former senior employees who accused the bank of using them as scapegoats in the long-running Monte dei Paschi scandal. The German lender is denying it hung its own people out to dry when regulators came knocking.
The dispute traces back to 2008-2012, when Monte dei Paschi di Siena, the world's oldest bank founded in 1472, was allegedly hiding around €2 billion in losses through complex derivatives transactions. Deutsche Bank and Nomura helped structure those deals. In November 2019, a Milan court convicted 13 individuals connected to the scheme, including Deutsche Bank executives. Then, in 2022, those convictions got overturned.
The counterclaim stacks up
The four ex-employees are seeking over £600 million, roughly $800 million, claiming irreparable reputational harm. Their lawsuit argues Deutsche Bank knowingly participated in the MPS transactions, then abandoned them when the legal pressure mounted. Deutsche Bank's response flips the narrative. The bank denies scapegoating and says its former staff shared responsibility for the deals.
This legal battle isn't happening in isolation. Since 2025, other former employees have filed separate lawsuits. One individual is seeking €152 million. Combined, the claims and counterclaims now exceed $1.4 billion, making this one of the messier internal disputes in recent banking history. Both sides are dug in, and there's no settlement in sight.
This article is informational and does not constitute financial advice or legal guidance.
